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Texas Business Organizations Code - Section 251.202. Transfer Of Shares And Membership; Withdrawal

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 251.202. Transfer Of Shares And Membership; Withdrawal

§ 251.202. TRANSFER OF SHARES AND MEMBERSHIP;  
WITHDRAWAL.  (a) A member who decides to withdraw from a 
cooperative association shall make a written offer to sell the 
member's membership certificates to the cooperative association's 
board of directors.
	(b)  Not later than the 90th day after the date the directors 
receive an offer under Subsection (a), the directors may cause the 
cooperative association to purchase the holdings by paying the 
member the par value of the certificates and the directors shall 
cause the cooperative association to reissue or cancel the shares 
after purchasing the holdings.  The directors shall cause the 
cooperative association to purchase the shares if a majority of the 
cooperative association's members voting at a regular or special 
meeting vote to require the purchase.
	(c)  An investor owning investor certificates must sell, 
assign, or convey the certificates in accordance with the 
cooperative association's bylaws.  If an investor fails to sell, 
assign, or convey investor certificates in accordance with the 
bylaws, the cooperative association on written notice to its 
directors shall repurchase the certificates by paying the investor 
the par value of the certificate plus all accrued investment 
dividends.  The certificates must be repurchased not later than the 
90th day after the date the cooperative association receives notice 
of the failure.

Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.                     

Last modified: August 11, 2007